ING, finance minister agree on US mortgages sale
Finance minister Jeroen Dijsselbloem has reached agreement with ING on the divestment of the bank’s American high-risk mortgage portfolio, the Financieele Dagblad reports.
In 2009, the government gave ING a €10bn capital guarantee for the mortgage portfolio. Although other state support has to be repaid by 2015, no deadline was set for the mortgage guarantee.
Now the situation in the US has improved to a level where in theory the Dutch state can cancel its guarantee. The improvement means ING can sell the portfolio and make a small profit, something which it is keen to do. However, Dijsselbloem was not keen on the divestment.
The minister has now agreed to the sale within a year, as long as the price is favourable. At current rates, the Dutch government could realise a profit of €400m.
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